Dodla Dairy (DODLA) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 consolidated revenue grew 13.7% year-over-year to ₹10,250 million, driven by strong volume growth in liquid milk and Africa operations, but margins were pressured by higher procurement costs and seasonality.

• EBITDA margin was 7.7% and PAT margin 6.7%, with Q3 FY26 net profit at ₹687 million, aided by a tax reversal.

• Value Added Products (VAP) contributed 25% of total sales, with bulk sales dropping sharply due to seasonality and market conditions.

• Africa operations delivered 34.5% revenue growth, with expansion projects in Uganda and Maharashtra progressing.

• Acquisition of Osam Dairy was completed in August 2025 and consolidated from that date, impacting comparability with prior periods.

Financial highlights

• Q3 FY26 operating revenue was ₹10,250 million (up 13.7% YoY); nine-month revenue was ₹30,507 million (up 8.5% YoY).

• Q3 FY26 EBITDA was ₹793 million (7.7% margin); Q3 FY26 PAT was ₹687 million (6.7% margin); nine-month PAT was ₹1,973 million.

• Gross margin declined to 26% from 28.2% YoY due to higher procurement costs and inability to fully pass on costs.

• One-time provision of ₹57 million for labor code changes, offset by a tax reversal of ₹219 million.

• Standalone revenue for Q3 FY26 was ₹8,215 million; standalone net profit was ₹568 million.

Outlook and guidance

• Price hikes of ₹2-3/liter are planned as summer demand rises, targeting average realization of ₹63-64/liter.

• Value-added product share expected to reach 30-32% of portfolio over time.

• Margins expected to remain in the 8-9% range, with potential upside in favorable years.

• Management remains confident in growth trajectory, with ongoing expansion in Maharashtra and Uganda.

• The company continues to monitor regulatory changes, especially regarding the New Labour Codes.